Ford is preparing to invest £1.5 billion in its four UK facilities over the next five years after securing a £360 million Government loan guarantee.
The news follows the government's decision to back £360 million of a £450m loan application to the European Investment Bank (EIB). The money is for investment in 'green technology', and was announced by Lord Mandelson today.
The loan is repayable on commercial terms.
Ford of Britain chairman, Joe Greenwell, said: "Ford welcomes this positive support from the government. It greatly assists in delivering Ford's commitment to invest £1.5 billion in new, affordable, volume-produced low CO2 technologies."